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EU Parliament Rejects Proposed Law on Software Patents

The European Parliament has rejected a proposed law intended to harmonize the rules for patenting software among member states. The Proposed Directive on Computer-Implemented Inventions was intended to codify certain practices of the European Patent Office and to more clearly define and restrict the availability of software patents. The vote is a further setback for the Directive in its nearly three year journey through the legislative process.

Critics of the legislation argue that software patents will limit the availability of "open source" software and harm small and medium sized enterprises that do not have the resources to play the patent game. Others who advocate the availability of software patents argue that European business will be prejudiced and inventors will not be rewarded for their efforts.

The rejection of the Directive leaves few options to the European Commission, the EU's executive body and original sponsor of the proposed law. The Commission can accept Parliament's decision and start anew or amend its proposal and retry. The Commission could ignore the decision and try to push ahead, risking controversy. The decision is expected to delay progress on the issue to the end of the year.

In the absence of harmonization, uncertainty remains as patent decisions in the area are left to national patent offices and courts.

For additional information, visit:
http://www.nytimes.com/2005/02/18/technology/18patent.html